If contribution margin is 72000 and operating income is 12000 then...

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If contribution margin is $72000 and operating income is $12000, then degree of operating leverage would be

A. 8

B. 7

C. 6

D. 5

Answer: Option C

Degree of operating leverage = Contribution margin ÷ Operating income
= $72000 ÷ $12000 = 6.

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